MODULE 4 BUSINESS MATH

PERCENTAGE, RATIO AND PROPORTION

TOMS Shoes popularized the one-for-one model in the United States. For every pair of TOMS
Shoes that a person buys, another pair is donated to a person in need, usually in a developing country.
Bringing the concept to the Philippines is not easy as social entrepreneurship is not as known here as it is
in the US, and Filipinos are often distrustful of campaigns that are promoted as serving the social good.
Another example of social entrepreneurship is BAG943, which is a mission-driven business that
incorporates social responsibility by giving a bag to a student in need for every bag purchased.

Josh Mahinay put up BAG943 due to his experience in his elementary days when he would ask
sari-sari stores for a plastic bag, which he used as his school bag. According to him, hard work and his
parents' constant counsel about valuing education are the keys to economic freedom; he had carried with
him the dream that one day, no poor kids will go to school without proper school bags. Josh shared his
mission with two friends and they founded the company BAG943 in July 2012.

BASE, RATE, AND PERCENTAGE

Problemns concerning commissions and overrides, trade and sales discounts, depreciation using periodic
rałes, analysis of financial statements, and a lot more business problems are solved with the use of the
basic formula showing the relationship between the base, the percentage, and the rate. Assuming a
delivery vehicle is depreciated at the rate of 10% annually and costs base here is the cost of the vehicle,
P200 000.00, the rate is the 10%, and the percentage is the Using the basic formula P = BR, we substitute
and see that the relationship and solution is correct: P200 000.00. The yearly depreciation of the vehicle
will be P200 000.00 × 10% = P20 000.00. The P20 000.0. P P20 000.00 P20 000.00 R B P200 000.00 P20
000.00 X PBXA X 10%

Using the basic formula P=BR, we substitute and see that the relationship and solution is correct:

P = B x R

20 000.00 = 200 000.00 10%

20 000.00 = 20 000.00

PRE-ASSESSMENT

1. 25% OF 60 is what?
2. 2/3 as large as 144 is what number
3. How many is 2/5 as large as 275
MODULE 4 BUSINESS MATH

In business, decision-makers like managers, owners, and creditors use the finanClal statements issued by a
company to come up witha financial analysis and arrive at basic decisions like continuing the business for
owners, maintaining or changing current plans for managers, and continuing to grant credit to debtors for
creditors. In financial analysis, we determine the percent of increase or decrease in sales or net profit. In
these cases, we use the knowledge of base, rate, and percentage.

Base (B) refers to that number of which a certain number of hundredths is taken. Base and percentage the
words of, "as much as," "as large as," "as many as," and "as great as." Also, it is regarded as the whole.
are compared to obtain the rate. As the basis of comparison: base is the number generally preceded by
Rate (R) refers to the number of hundredths taken, Itis the result of comparing a number (percentage
which is regarded as the portion or part) to another number (base which is regarded as the whole). It can
be expressed in percent, decimal, or fraction.
Percentage (P) is the part considered in its quantitative relation to the whole. In other words, it is the part
of the whole and the number being compared to another number (base). The result obtained when the rate
is applied to the base is the percentage. It is expressed in the same unit as the base, i.e., if the base is in
pieces, the percentage is in pieces; if the base is in number of students, the percentage is in number of
students. It is never expressed in percent, which is the common mistake of students.

If we take 50 as the whole and we take 20 as the part, the base is 50 (whole), 20 is the percentage
(part), and the rate is (part/ base). The basic formula to show the relationship between the base, the rate,
and the percentage is:
P= BR (1)
If any two of the elements are given, the remaining element can be solved. It is, however,
important that we'll be able to identify which is the base, and which is the percentage. The rate is easy to
identify because it is generally expressed in percent. As previously mentioned, the rate can also be
expressed ir fraction or in decimal.

Let us take a company that made a net sales of 108 000.00 in 201B and a net sales of 90 000.00 in
201A. to get the percent of increase in sales, we do the following:

% of increase in sales =
=
= 20% or 0.20
Finding the Percentage

1. 50% of 24 is what?
Given : R=50% Find P
B= 24

Solution : P=BR
P= 24 x 50%
P= 24 * ½ = 12
2. Finding the Base
To find the Base. We divide the percentage by the rate, to wit:

This is an important tool to remember in business computations. If we want to get the whole
or 100 %, we simply divide the given number by its corresponding percent that is why we
have defined base as the number of which a certain number of hundredths is taken

1. If I have 25.00 and its represents ¼ of my entire money, how much money do I have in
all?

Given: P= 25.00 Find: B

R= ¼

Solution
MODULE 4 BUSINESS MATH

B= 100. 00

FINDING THE RATE

To find the rate, we divide the percentage by the base:

1. What part of 400 is 50?

Given: B= 400 Find : R
P= 50

Solution:
= 1/8
Check: 1/8 x 400 = 50

FINDING THE RATE OF INCREASE/DECREASE

Rate of Increase/ (Decrease) = =

Where = Original Quantity

= New Quantity

Example

1. Zeny’s Current salary is 3 600 a month. Her previous salary was 3 200.00. what is the rate of increase
in her salary?
Solution:
=

LET’S SHARE THE FOLLOWING

Answer the following

1. What number is 5/6 as many as 396?

2. What number is 5/8 as large as 8 500?

3. 5/7 of 21 000.00 is how much?

4. 83/3 % of 300 000.00 is how much?

5. Transform the questions into sentence equations

MODULE 4 BUSINESS MATH

Name______________________________________ Date_______________________ Score_________

Activity

A. Solve for the unknown using formula, then transform the question into a sentence equation.
1. 26.04 is 8.14% of what number?

2. 2 ½ of what amount of 80.00?

3. 27.50is 50% of how much?

4. 33 1/3 % of what amount is 33.00?

B. Solve for the unknown using the formula P=BR

1. A company nets a profit 26 600 representing 28% of gross receipts. Compute the amount of gross
receipts.

2. Twelve White T-shirts represents 25% of the entire stock of T-shirts in anRTW store. The rest are
colored

a. Compute the total quantity of T-shirts in stock

b. How many colored T-shirts are there? Check your answer.